El Paso Water will be able to get up to $100 million in low-interest, state loans this year and up to $50 million next year to make additional land purchases in Hudspeth County as part of its long-term water importation plan, officials announced Thursday.

The Texas Water Development Board on Thursday approved the loan authorizations for the city's water utility.

The approval comes only two weeks after the Public Service Board, which runs the city water utilities, used a previously authorized Texas water board loan to buy the 26,470-acre CL Ranch in the Dell City area for $49.7 million as a future groundwater source for growing El Paso.

“Leveraging the SWIFT (State Water Implementation Fund) loan program at a time of historically low interest rates allows El Paso Water the flexibility to invest in future water sources, spread costs over a long time horizon and reduce the long-term impact to ratepayers,” John Balliew, El Paso Water chief executive officer, said in a statement.

The loan to buy the CL Ranch has an 1.98 percent interest rate. The $100 million loan authorization has a 1.91 percent interest rate, and the $50 million authorization has a 2.03 percent interest rate, a Texas water board official reported.

El Paso Water officials have already started talking with multiple land owners in the Dell City area about purchasing additional land and the accompanying water rights for future water use, utility officials reported.

Martin Silva, president of Silva Super Market, and a Public Service Board member from 2002-2006, said buying the so-called water ranches is a good idea. However, he said, he's concerned the PSB does not have a permit to export the water from Hudspeth County.

"We need some assurance that this permission will be granted in 35 years," when El Paso Water plans to begin pumping groundwater out of Hudspeth County, Silva said. "The debt will be there for the (El Paso) ratepayers to pay whether we export the water or not."

Balliew recently told the El Paso Times in an email that the "Hudspeth County Underground Water Conservation District rules spell out that the district would approve the conversion of our existing permit (for the CL Ranch and other properties) to one(s) that would allow us to export water.

"Since our Far West Texas Water Plan does not call for exportation until 2050, El Paso Water has plenty of time to start the process to convert the current permit(s) to one that allows exportation of the water," Balliew said.

Silva said Balliew's assurance doesn't take away his concerns because things could change in the future if Hudspeth County starts running out of water, or state officials in the future for some reason decide to block the water importation plan, he said. Balliew and current Hudspeth County water officials aren't likely to be in their positions in 2050, he added.

"Things could change. It would be better to get something on paper," such as a memo of understanding, to make sure El Paso's water exportation plan won't be blocked, Silva said.

Besides the recent $49.7 million ranch purchase, the PSB paid more than $26 million in the last 24 years to buy other land in Hudspeth, Culberson, and Jeff Davis counties for future water exportation.

Balliew has said that El Paso Water ratepayers ultimately will pay for the land purchases, which are part of an estimated $600 million bill for the utility's long-range water exportation plan, which also includes pipelines, pumping stations, water-treatment facilities and other costs.

“While expensive, investments in new water sources, including advanced purification, expanded desalination and importation, are all essential to meet the needs of El Paso’s population growth," Balliew said.

More information: epwu.org

Vic Kolenc may be reached at vkolenc@elpasotimes.com; 546-6421; @vickolenc on Twitter.